Additionally, the city will waive permit fees for utility customers who install city-approved DG systems. However, the city’s Development Services Department, which collects fees related to DG system installation, will still receive them because the city’s electric utility will pay them in lieu of the customer, said City of San Marcos Director of Public Services Tom Taggart.

Utility customers may sell excess electricity produced from DG systems back to the city. Taggart said the city will purchase the excess electricity at the same average rate at which the city buys electricity from its suppliers. The rate is currently $0.059127 per kilowatt hour, said Taggart.

Taggart proposed the council allocate $60,000 in the city’s budget for incentive payments next fiscal year, which begins October 1. The $5,000 payments will be limited only to one new, first-time system, according to the enabling resolution passed by the city council.

“No customer shall be entitled to additional incentive payments for expansions or modifications to existing systems or for multiple independent systems at a single platted lot,” the resolution states.